Tom Essaye, founder of The Sevens Report, clarified the specific impact that new lockdown measures could have on the market. “Coronavirus cases are spiking and reopenings are being delayed, which at a minimum will impact earnings…” Essaye said. Click here to read the full article.
“Coronavirus cases are spiking and reopenings are being delayed, which at a minimum will impact earnings. The resurgence in coronavirus cases is raising concerns that the rebound may be short-lived as…” said Tom Essaye, founder of The Sevens Report. Click here to read the article
“Coronavirus cases are spiking and reopenings are being delayed, which at a minimum will impact earnings. The resurgence in coronavirus cases is raising concerns that the rebound may be short-lived as voluntary…” said Tom Essaye, founder of The Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Futures are slightly higher following a quiet weekend as markets attempt to bounce following Friday’s selloff.
Coronavirus cases continued to rise, with new U.S. cases topping 40k for Friday, Saturday and Sunday. More states (including California) are pausing re-openings, although none have re-imposed economic restrictions yet.
Economic data was sparse overnight as Euro Zone Economic Sentiment slightly missed expectations (75.7 vs. (E) 80).
Today there is just one economic report, Pending Home Sales (E: 11.3%) and one Fed speaker, Williams (3:00 p.m. ET) and neither should move markets.
Instead, focus will remain on the coronavirus and specifically whether more states pause, and potentially rollback, economic re-openings. Technically, the S&P 500 is sitting on support at 3,000, and if that’s broken, we could see a uptick in selling by programs and algos.
What’s in Today’s Report:
Stock futures are trading higher with international shares as conflicting trade war headlines continue to be digested while economic data was mostly encouraging overnight.
White House trade advisor, Peter Navarro, said late Monday that the U.S.-China trade deal was “over,” but his comments were contradicted by a Trump tweet saying the deal was “intact,” which saw risk-off money flows reverse o/n.
Global Composite Flash PMIs largely topped expectations overnight, bolstering hopes that a swift economic recovery is underway.
Today, investor focus will be on economic data early as the U.S. Composite PMI Flash (E: 45.0) and New Home Sales (E: 630K) are both due out shortly after the opening bell.
There are no Fed officials scheduled to speak today but there is a 2-Year Treasury Note auction at 1:00 p.m. ET that could impact the yield curve and ultimately move the equity markets in the afternoon.
Aside from those potential catalysts, any further developments regarding the trade war or coronavirus infection rates will be closely watched as the market continues to look for direction with the S&P being tightly rangebound for the last week.
What’s in Today’s Report:
Futures are solidly higher following a generally quiet night as markets again try to extend this week’s rally.
Economically, British Retail Sales were much stronger than expected, rising 12% vs (E) 6.5% and adding to the better than expected data this week.
New daily coronavirus cases continued to increase in the U.S., but markets for now continue to look past the recent uptick.
Today there are no notable economic reports, although there are multiple Fed speakers including: Powell (1:00 p.m. ET), Rosengren (10:15 a.m. ET), Quarles (12:00 p.m. ET), Mester (1:00 p.m. ET). But, given Powell’s testimony earlier this week, it’s unlikely any of the Fed officials say anything to materially move markets.
Finally, today is a “quad witch” quarterly options expiration, so we should expect big volumes and an uptick in volatility into the close.
“You’re seeing companies adapt and that’s exactly what’s going to have to happen in this economy,” financial expert Tom Essaye said. “The state could open tomorrow, but that doesn’t necessarily mean people will flock to restaurants, the mall and bars…” Click here to read the full article.
“Coronavirus headlines were mostly positive overnight as there were reports of expanded testing capabilities in the U.S., the growth rate of new cases continues to…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly lower following a generally quiet night as markets digest this weeks’ gains ahead of jobless claims and the Powell speech.
On the coronavirus front, news was again positive as Austria and Denmark became the first European countries to begin to lift coronavirus restrictions.
Economic data overnight was better than feared as German exports and British IP both beat estimates.
Today focus will be on Jobless Claims (E: 5 MM) and the Powell speech (10:00 a.m. ET). For claims, it’d be a positive surprise if they declined from last week’s number and that’d add to the good news from this week, while a spike towards 10MM would be a modest negative vs. expectations.
For the Powell speech, markets just want reassurance that the Fed is committed to doing whatever it takes to ensure orderly operation of markets, which is what we should get.
What’s in Today’s Report:
Futures are seeing a moderate rally/bounce as the Fed acted, again, and oil bounced on comments from Trump.
The Fed said it will exclude Treasury holdings and deposits from certain leverage ratios (that essentially allows banks to lend more money which should help the economy).
On oil, Trump said he expected a Russia/Saudi oil deal within “days” but gave no specifics as to how that might happen (although it would be a positive if it does).
Today the key report is Jobless Claims (E: 3.350M), although we also get Motor Vehicle Sales (E: 14.3M) and International Trade (E: -$39.5B).
But, in reality, the real driver of markets right now is coronavirus headlines. They were more positive in tone last week, but have turned more negative this week and that’s why stocks dropped so hard yesterday. Any good news on 1) A pharma solution (vaccine/antibody treatment/trials) or 2) Slowing of the spread will help make this early bounce more sustainable.